US President Donald Trump said on Friday American forces had destroyed military targets on Iran’s Kharg Island, Tehran’s main oil export terminal, while warning he could also target the island’s petroleum infrastructure if Iran or its allies continue threatening shipping through the Strait of Hormuz, sending fresh tremors through oil markets.

In a post on Truth Social, Trump said the US forces had “totally obliterated every MILITARY target in Iran’s crown jewel, Kharg Island,” but added he had chosen “NOT to wipe out the Oil Infrastructure on the Island,” warning he would reconsider if the “Free and Safe Passage of Ships through the Strait of Hormuz” was disrupted. 

Kharg Island handles about 90% of Iran’s crude exports and remains one of the most sensitive energy points in the Gulf.

Brent crude settled at $103.14 a barrel, up 2.67%, as traders weighed the risk that any strike on Kharg’s oil facilities could sharply tighten already disrupted regional supplies. 

Brent Crude Analysts at Barclays said prolonged disruption in the strait could push Brent toward $100–$110 or higher, after raising their 2026 forecast to $85 a barrel under a shorter disruption scenario.

The escalation came as reports emerged of another strike inside the US embassy compound in Baghdad, where a projectile hit the compound shortly after strikes killed two Iran-backed fighters in the Iraqi capital.

Earlier, the United States Central Command (CENTCOM) confirmed the death of all six crew members of the KC-135 refuelling aircraft that crashed in western Iraq. 

In an update issued today on the incident, CENTCOM reiterated that the crash was not the result of hostile or friendly fire. It added that the aircraft was lost while flying over friendly airspace in western Iraq as part of Operation Epic Fury missions.